TAKATA AIR BAG RECALL COULD BE COMPULSORY

The Takata air bag recall saga trundles on, with the ACCC poised to decide upon the recall becoming compulsory, according to Australian Automotive Dealer Association (AADA) Executive Director Operations, Brian Savage.

It depends on the findings of the ACCC’s investigation into the logistics and progress of the recall, about which the regulator continues to raise questions.

The ACCC already has a draft compulsory recall notice that will come into effect only after it recommends its enactment through the Minister for Small Business, Michael McCormack, which will most likely be before the end of this year.

Mr Savage has been attending a series of industry stakeholder meetings convened by the ACCC to investigate the issues surrounding the recall.

He said the ACCC has raised concerns about the advice manufacturers have given to Dealers and customers and the capacity of Dealers to complete the recall.

The Regulator also wants to know what arrangements manufacturers have put into place with their Dealer networks to ensure the work is completed.

Several manufacturers have opposed a compulsory recall, arguing the recall is progressing as well as can be expected and that Dealers can meet the demand with the available level of replacement airbags.

Dealer concerns continue to focus on workshop capacity, which could become unmanageable if the compulsory recall is announced and customers all turn up at dealerships at once. They are also concerned about the potential buy-backs and having to provide loan vehicles, both ideas that ACCC has been exploring.

An earlier proposal by the ACCC – to allow independent repairers to perform the recall – has been dismissed on the grounds that the risks far outweigh any perceived benefit.

A compulsory recall potentially includes an additional 877,000 vehicles more than the 2.49 million already recalled for rectification by 31 December 2020.

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